Contact Exploration Inc.

Contact Exploration Inc.

June 26, 2008 14:51 ET

Contact Exploration Inc. Announces Closing of $11.5 Million Financing

CALGARY, ALBERTA--(Marketwire - June 26, 2008) -


Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce that it has closed its previously announced "bought deal" brokered private placement through Canaccord Capital Corporation of Calgary, Alberta as lead underwriter and Acadian Securities Inc. of Halifax, Nova Scotia (collectively, the "Underwriters").

Including the exercise of the Underwriters' option on overallotments, the aggregate gross proceeds raised were $11,511,500. 17,710,000 units of Contact were sold at a price of $0.65 per unit, each unit consisting of one common share and one half of one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at $0.95 until June 26, 2010.

The Underwriters received a cash commission of 7% of the gross proceeds and a total of 1,239,700 broker warrants to purchase common shares exercisable at $0.75 per share until June 26, 2009.

The net proceeds from this financing will be used for Contact's Nova Scotia and New Brunswick shale gas activities and for general corporate purposes.

All securities issued pursuant to this financing, including any securities issued in payment of commissions, will be subject to a four month hold period commencing on the date of closing.

About Contact Exploration Inc.

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration & production. Contact's holdings and operations are located in close proximity to one of the world's largest consumption markets, near strong pipeline and refining infrastructure and in mature jurisdictions with reasonable royalty structures in place.

Contact's philosophy is to operate production and exploration in our core area of Atlantic Canada, and to participate in unconventional shale gas exploration, such as the Windsor Shale Block in Nova Scotia and the Beech Hill Shale Prospect in New Brunswick (both operated by Triangle Petroleum).

Contact has onshore interests in approximately 700,000 acres in Nova Scotia, approximately 70,000 acres in west Newfoundland and 165,000 acres in New Brunswick which includes the Stoney Creek Field (approximately 5,500 acres), a field with estimated proved and probable reserves of 1.2 million barrels of oil and 6.5 bcf of natural gas. In addition to the Atlantic Canadian properties, Contact has producing oil assets in south eastern Saskatchewan.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. We do not intend, and do not assume any obligation, to update conclusions, forecasts or projections that may be contained in these forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation, potential delays or changes in plans with respect to exploration and development projects, success of exploration and development activities, general industry and market conditions and other risks detailed from time to time in Contact's Annual Information Form and Management's Discussion and Analysis, both of which may be found at

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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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